Steps to Get Approved For an Investment Property with Arizona Hard Money

arizona hard money - Steps to Get Approved For an Investment Property with Arizona Hard Money

1. Gather your paperwork. Be prepared to provide copies of: two month’s worth of your bank statements, investment account, and retirement account statements (all pages; not Internet statements); the last two pay stubs if you have a regular paycheck job; driver’s license and Social Security card; and bankruptcy, divorce or separation papers, if applicable. If you are self-employed, you may be asked for some or all of the following: business license or occupational license, letter from your CPA establishing two years’ self-employment, last two year’s tax returns, business bank statements, and/or business financial statements.

2. Assemble your team. You will want an accountant who understands investment property tax strategies; a realtor or real estate attorney who can help you make sure you use the properly worded contract and include the right contingencies; a mortgage professional with experience in investment properties; an attorney who understands asset protection to help you form the right structure for holding your investment property (often a limited liability company or LLC); and an experienced insurance agent. I strongly believe all of these professionals should invest in real estate themselves since investment property transactions have special nuances. Advisors with investment property experience can help identify potential problems before they happen. One of the big ones: holding investment property in your own name, warns Rich Dad Advisor Garrett Sutton, an attorney and author of Own Your Own Corporation (Warner) How to Use Limited Liability Companies and Limited Partnerships (SuccessDNA). By doing so, you expose your real estate and personal assets if a lawsuit arises.

3. GET PRE-APPROVED. BEFORE YOU START HOUSE-HUNTING, GET PRE-APPROVED FOR A LOAN THROUGH A MORTGAGE BROKER OR THROUGH A LENDER LIKE HARD MONEY LENDERS ARIZONA.   MAKE SURE TO  REQUEST THIS PRE-APPROVAL IN WRITING. THAT PIECE OF PAPER CAN BE VERY HELPFUL WHEN YOU NEGOTIATE THE PURCHASE OF A PROPERTY SINCE IT GIVES THE BUYER GREATER ASSURANCE THAT YOU WON’T TIE UP THE DEAL AND NOT QUALIFY. A NOTE FROM ANARIZONA HARD MONEY LENDER WILL GIVE THE SELLER ASSURANCE AND WILL GIVE YOU  A  LEG UP ON ANYONE ELSE COMPETING FOR THE PROPERTY.

arizona hard money